@Anonymous wrote:My wife and I have to buy a vehicle ASAP. Her company is deciding to take away company cars and have everyone drive personal vehicles instead, which they will reimburse the miles driven instead. We are ok with a higher rate so we went to CAP 1 and were preapproved with a rate of 10.89-21.94.. We have a good amount of money coming in to pay down debt/collections on our credit to try and lower the rates.. Question is if we had to choose, which would you do? Pay down CC to lower util? Or pay off Collections?
That's odd... Usually Cap1 gives you a pretty small range when they give you a preapproval.
What kind of money are you talking about? If its really a significant amount, you might be better off putting a large down payment on a vehicle, finance the absolute minimum just so you can have an auto loan reporting pays as agreded on your credit report, and then take the "savings" that you would have been throwing at the bigger payment and throwing THAT towards your debt/collections.
Final note... Don't pay off any of the collections without first attempting to negotiate a "pay for delete" agreement, where they remove the derogs from your CR.